Lecture on Career Paths in Accounting and M&A within the Big Four

Overview

• Discussion on common career paths within Big Four accounting firms (KPMG, Deloitte, PwC, EY)
• Focus on transitions between departments, especially into M&A (Mergers and Acquisitions)
• Insight into team sizes and hiring patterns

Hiring Practices

• Big Four firms hire very few graduates directly into M&A teams
• M&A teams are smaller compared to audit and tax teams
• Graduates often start in audit, tax, or consulting
• Some come from boutique investment banks or other advisory firms

Common Career Transitions

From Audit to M&A

• Many start in audit and then move to other departments, including M&A
• A natural transition for auditors is to the due diligence team
• After due diligence, individuals may move to M&A

Due Diligence Team

• Part of the corporate finance pocket
• Considered a technical field; auditors have the necessary technical background
• Few people start directly in due diligence; most transition from audit
• After gaining experience in due diligence, individuals often move to M&A

Corporate Finance Pocket

• Departments within this area:
  • M&A
  • Due Diligence
  • Transaction Strategy or Operational Strategy (M&A Integration)
  • Restructuring or Insolvency
  • Valuation (Financial Modeling)

Transition Timing

• Transition from audit to due diligence typically happens after obtaining a chartered accountancy qualification (3-4 years)
• Move from due diligence to M&A often occurs after an additional 2-3 years

Skills and Strategy

• Due diligence requires understanding accounting and technical skills
• M&A strategy involves advising clients directly on merger and acquisition activities

Summary

• Starting in audit provides a strong technical foundation
• Most natural progression: Audit -> Due Diligence -> M&A
• Experience in various departments builds a diverse skill set useful in corporate finance